Bond Price & Bond Yield = Inverse Relation
Eg :- If person A purchase govt. Bond for say 100 Rs with interest rate = 8% then he will get 108 Rs. But if he sell it to person B before mature period ( due to lack of confidence in Govt or due to attraction towards high yielding private sector ) for 90 Rs then for person B, investment done is 90 Rs only & return is the same i.e 108 Rs.
So therefore bond yield increase in this manner ( it was 8 % for A but it will be 20 % for B ) and in future if Govt issue new bond for Rs 100 then no one will purchase as they will think ( ye to 90 Rs mai hi mil raha hai ) so it will result in loss for Govt.( or Govt bond purchaser i.e bank here )

aspirant!!!!!!! plz cover back dna more effective n more explain . bca now every thing is lock lock.i hope u all understand what i try to say.unacedmy n js ,all are change.anyone guys how is able plz try to analyse dna n open new hope for aspirant.take help of vision daily current affairn insight also which more effective.plz dont mind js sirbut it is realty